The report titled "UAE Car Finance Market Outlook to 2021 – Rising Car Finance Penetration and Multiple Car Finance Products Offered by Banks to Foster Growth" which provides an extensive analysis of car finance market in UAE. The report covers market size on the basis of credit disbursed, number of cars financed and new and used car penetration, segmentation on the basis of new and used car finance, tenure of loan for new car and used car and number of new cars financed in each emirate. The report also includes the rules and regulations implied by the government on the banks and private finance companies in lending a car loan, competitive landscape and company profiles for major players in the car finance market. The report provides detailed overview on the general features of car loan in the country and future outlook & projections with future strategies of the players in the market.

The report facilitate the readers with the identification and in-depth analysis of the existing and future trends and issues that impact the industry and has anticipated growth in the future depending upon changing industry dynamics in coming years. The report is useful for prospective borrowers, car dealers, banks, private finance companies and other stakeholders to plan their market centric strategies in accordance with the ongoing and expected trends in the future.

Industry Overview

The market has displayed a steady growth trend until 2015 during the review period, 2011-2016 at a CAGR of ~%. In 2016, there had been a fall in the credit disbursed for passenger and commercial cars as a result of the weakening macro economic conditions within the country. The growth exhibited by the market during the initial five years of the review period was supported by factors such as increasing demand for new and used cars, rising price of the cars, low profit rates or interest rates and other related factors. Fall in the credit disbursement observed during 2016 was resulted out of the falling oil prices, increasing loan rejection rates, stringent lending policies adopted by the banks due to the piling up of non-performing loans and other such factors.

Market Segmentation of UAE Car Finance MarketThe UAE car finance market is segmented by new and used car finance, by tenure of loan for new and used car on the basis of number of cars financed and by emirate on the basis of number of new cars financed.On the basis of credit disbursed, the new car dominated the market with a share of ~% in 2016 followed by used cars. For new cars, the tenure of three years dominated the car finance market with a share of ~% on the basis of number of new cars financed in 2016.

It is followed by four years, two years, five years and one year tenures.Dubai holds the highest share among all other emirates of UAE in terms of number of new cars financed. It held a share of ~% during 2016. Abu Dhabi holds the second position in the market followed by Sharjah, Ras Al Khaimah, Umm Al Quwain, Al Ain and Fujairah.

Competitive LandscapeUAE car finance market comprises of players such as banks and private finance companies; banks being the major player. The market is highly fragmented with more than ~ banks and ~ private finance companies. Banks are spread across the country with more than 1,000 branches. Strict competition is existent in the market with over five dozen financing schemes for both used and new cars offered by these players. The banks and private finance companies compete with each other on the basis of various loan parameters such as interest rates or profit rates, loan tenure, early settlement charges, feature packed loans, additional offers, minimum salary requirement and various other parameters. Major players in the market include Emirates NBD, Dubai Islamic Bank, Mashreq Bank, Al Wifaq Finance, Finance House and others.

Future Potential of UAE Car Finance MarketDuring the forecast period 2017-2021, the UAE car finance market is expected to recover from the fall it has experienced towards the end of the review period, 2011-2016. It is anticipated that the car finance market in the country will grow at a CAGR of ~% during the forecast period 2017-2021. The recovery is presumed to be at a slow pace due to various factors such as low deposit rates prevailing in the market and high rate of non-performing loans compelling the banks to consolidate their existing activities rather focusing on growth. However, a growth is expected to be observed in the market which will be supported by an increased number of bundled offerings, new innovative strategies adopted by the banks and dealers and other entities. Moreover, increasing demand for electric cars within the country will enable the development of fresh car loans.

Key Topics Covered in the Report:

UAE Car Finance Market Overview and Genesis

UAE Car Finance Market Size

UAE Car Finance Market Segmentation

Government Regulations on UAE Car Finance Market

Trends and Issues in UAE Car Finance Market

Product Features of Car Loans by Banks and Private Finance Companies in UAE Car Finance Market

Figure 4-1: UAE Car Finance Market by Credit Disbursed on Car Finance in USD Million, 2011-2016Figure 4-2: UAE Car Finance Market Size on the Basis of Number of New Cars Financed in Units, 2011-2016Figure 4-3: UAE Car Finance Market Size by New Car and Used Car Finance Penetration in Percentage (%), 2011-2016Figure 4-4: Average Ticket Size for New Car Finance in UAE in AED, 2011-2016Figure 5-1: UAE Car Finance Market Segmentation by New Car and Used Car Finance on the basis of Credit Disbursed in Percentage (%), 2011-2016Figure 5-2: UAE Car Finance Market Segmentation by Loan Tenure - New Car on the basis of Number of New Cars Financed in Percentage (%), 2016Figure 5-3: UAE Car Finance Market Segmentation by Percentage Share of Loan Tenure - Used Car on the Basis of Number of Used Cars Financed in Percentage (%), 2016Figure 5-4: UAE Car Finance Market Segmentation by Percentage Share of Emirate on the basis of Number of New Cars Financed, 2016Figure 7-1: Minimum Salary Requirement for Car Loans in UAE on the Basis of Number of Banks in Percentage (%), 2016Figure 7-2: Percentage Share of Banks offering Car Loans to Customers Working for Listed and Non-listed EmployersFigure 7-3: Interest Rate Charged by Different Banks on Car Loan on the Basis of Total Number of Banks in Percentage (%), 2016Figure 7-4: Maximum Amount of Car Loan Financed on the Basis of Number of Banks in Percentage, 2016Figure 8-1: Ratio of Non-Performing Loans to Total Gross Loans of Banks in UAE, 2011-2016Figure 8-2: Crude Oil Price per Barrel in UAE, in AED, 2012-2016Figure 10-1: Credit Disbursed for Vehicle Loan by Dubai Islamic Bank in AED Million, 2011-2016Figure 11-1: Future Outlook and Projections for UAE Car Finance Market on the Basis of Credit Disbursed for Car Finance in USD Million, 2017-2021Figure 12-1: New Car Sales in UAE in Units, 2011-2021Figure 12-2: Consumer Expenditure in UAE in USD Million, 2011-2021Figure 12-3: Number of Bank Branches in UAE, 2011-2021Figure 12-4: Gasoline Prices in UAE (AED per Barrel), 2011-2021

Table 2-1: Correlation Matrix of UAE Car Finance MarketTable 2-2: Regression Coefficients Output for UAE Car Finance MarketTable 4-1: Rationale and Description for UAE Car Finance Market Size on the Basis of Credit Disbursed, 2011-2016Table 4-2: Rationale and Description for UAE Car Finance Market Size by Number of New Cars Financed, 2011-2016Table 4-3: Rationale and Description for UAE Car Finance Market Size by Car Finance Penetration, 2011-2016Table 5-1: UAE Car Finance Market Segmentation by New Car and Used Car Finance on the basis of Credit Disbursed in USD Million, 2011-2016Table 5-2: UAE Car Finance Market Segmentation by Loan Tenure - New Car on the Basis of Number of New Cars Financed, 2016Table 5-3: UAE Car Finance Market Segmentation by Emirate on the Basis of Number of New Cars Financed, 2016Table 5-4: Number of Banks Branches in UAE by Emirate, 2014Table 6-1: General Terms and Conditions for Car Loan in UAE, 2012Table 6-2: Al Etihad Credit Bureau, 2014Table 8-1: Population of UAE by Nationality in Percentage, 2016Table 9-1: General Product Features in UAE Car Finance MarketTable 9-2: Rates Associated with Car Loans in UAETable 9-3: Features of Car Finance by Mashreq BankTable 9-4: Features of Al Islami Car Finance by Dubai Islamic BankTable 9-5: Features of Al Islami Car Ijarah by Dubai Islamic BankTable 9-6: Features of Car Finance by Emirates Islamic BankTable 9-7: Features of Car Finance by Al Hilal BankTable 9-8: Features of Car Finance by Emirates NBDTable 9-9: Features of Car Finance by Al Wifaq Finance CompanyTable 9-10: Features of Car Finance by Finance House Finance CompanyTable 10-1: Competitive Landscape for Mashreq Bank including Company Overview, Products and Services, Number of Employees, Number of Branches and Other ParametersTable 10-2: Competitive Landscape for Dubai Islamic Bank including Company Overview, USP, Business Strategy, Revenue, Products and Services and other ParametersTable 10-3: Competitive Landscape for Emirates Islamic Bank including Company Overview, Products and Services and other ParametersTable 10-4: Competitive Landscape for Al Hilal Bank including Company Overview, Business Strategy, Products and Services, Number of Branches, Number of Employees, Net Revenue and other ParametersTable 10-5: Schedule of Fees for Vehicle Finance in Al Hilal Bank, 2016Table 10-6: Competitive Landscape for Emirates NBD including Company Overview, Business Strategy, Revenue, Products and Services and other ParametersTable 10-7: Schedule of Fees for Auto Loan in Emirates NBD, 2016Table 10-8: Competitive Landscape for Al Wifaq Finance including Company Overview, Products and Services and other ParametersTable 10-9: Competitive Landscape for Finance House including Company Overview, Products and Services and other ParametersTable 11-1: Strategic Analysis for Banks and Private Finance Companies in the FutureTable 11-2: Future Outlook for UAE Car Finance Market on the Basis of Credit Disbursed for New Car Finance, 2017-2021Table 12-1: Rationale for New Car Sales in UAE, 2011-2021Table 12-2: Rationale for Consumer Expenditure in UAE, 2011-2021Table 12-3: Rationale for Number of Bank Branches in UAE, 2011-2021Table 12-4: Rationale for Gasoline Prices in UAE, 2011-2021

We would like to thank the entire team of Ken Research in showcasing professionalism in research and quick turnaround time. We have had multiple research reports from Ken Research. The deadline communicated for research was duly met. The research reports were covering many aspects in detail. This showcases their endeavor and care for client satisfaction and a strong understanding of the clients’ requirements. Thank you again for your help... "Group Vice President Strategy, Aliaxis"